CorrFlex Graphics, LLC to Acquire Chesapeake's U.S. Display Business.

Business Editors

RICHMOND, Va.--(BUSINESS WIRE)--April 23, 2001

Chesapeake Corporation (NYSE: CSK) today announced the signing of an agreement by which CorrFlex Graphics, LLC, a leading provider of corrugated packaging and displays in the Eastern United States based in Statesville, N.C., will acquire the assets of the U.S. Display business of Chesapeake Display and Packaging Company, a subsidiary of Chesapeake Corporation. The transaction is scheduled to close in June 2001, subject to regulatory approvals, CorrFlex's financing and the other customary closing conditions. Chesapeake expects to use the proceeds of the divestiture to reduce its long-term debt.

The U.S. Display business being purchased by CorrFlex designs, manufactures, assembles and packs temporary point-of-purchase displays and merchandising units. It serves many of the largest U.S. consumer packaged goods companies through its two corrugated converting and four assembly and packing facilities, several sales design centers, and over 1,000 employees.

L. Kerry Vickar, chairman and chief executive officer of CorrFlex, said, "Chesapeake Display and Packaging's U.S. Display business holds a premier position in the point-of-purchase industry. It is our firm belief that this position has been achieved as a result of the high level of expertise and dedication of its employees and commitment to customers, together with investments in state-of-the-art assets. We are pleased and excited about the opportunity of continuing to grow and develop this business in conjunction with our wholly owned subsidiary CorrFlex Display & Packaging, LLC."

Chesapeake's Chairman, President and Chief Executive Officer Thomas H. Johnson said, "The sale of the U.S. Display business is the second in a series of planned divestitures we announced earlier this year. These divestitures will accelerate the repositioning of Chesapeake as a focused specialty packaging company and provide greater visibility to our inherent value.

"We believe the sale to CorrFlex is in the best interest of both the dedicated employees of Chesapeake Display and Packaging, who should have new and expanded opportunities with CorrFlex, and this business' customers, who will benefit from CorrFlex's industry-focused entrepreneurial culture."

Bryan L. Smith, president of CorrFlex Graphics, LLC, said, "During 1998, our company acquired Southland Packaging & Promotions, as well as Bostic Packaging and Consolidated Packaging. In the following year, the company acquired Cor-Box and opened two facilities. Consolidated Packaging, renamed CorrFlex Packaging, LLC, operates four converting and assembly facilities in Georgia, Illinois and Michigan. CorrFlex Display & Packaging, LLC, the former Southland and Cor-Box operations, are dedicated to designing and manufacturing point-of-purchase displays, high graphics packaging and other corrugated products from its Statesville, N.C., and York, Pa., locations. Bostic, located in Monroe, N.C., is a provider of flexible packaging materials. The company employs approximately 500 people in its seven locations in the United States."

Chesapeake Corporation, headquartered in Richmond, Va., is a global leader in specialty packaging. Chesapeake is a leading European folding carton, leaflet and label supplier and a leader in plastics packaging for niche markets. Chesapeake has over 75 locations in North America, Europe, Africa and Asia. Chesapeake's website is www.cskcorp.com.

This news release, including comments by Thomas H. Johnson, contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The accuracy of such statements is subject to a number of risks, uncertainties and assumptions that may cause Chesapeake's actual results to differ materially from those expressed in the forward-looking statements including, but not limited to: the ability of the Company to complete divestitures in a timely manner and with adequate proceeds; and other risks that are detailed from time to time in reports filed by the Company with the Securities and Exchange Commission.